StampSelector is an online philatelic investment and stamp market resource, providing practical information for stamp collectors, stamp dealers, and investors. This includes stamp investment tips, general commentary on the stamp market, and practical advice regarding building a stamp collection and profiting from philately.

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Sunday, December 29, 2013

From 1932-'33, Australia overprinted six stamps "OS" (for Official Service), creating a set of Officials (Scott #06-11). 48,000 sets were issued, and Scott '14 prices the unused set at $148.75 ($275.- for NH) . In all likelihood, many were used as postage by various government offices and discarded.

While I sometimes advise obtaining expertization for overprinted issues, it's not necessary in this case because the Officials are not worth considerably more than the basic stamps.

I favor all better stamps of
Australia. As a a prosperous nation of 22 million people, it has a
diverse economy, with thriving service, agricultural, and mining
sectors. Annual GDP growth has averaged 2.6% over the past 15 years.
Recently, there has been considerable growth in mining and petroleum
extraction, in part due to increased exports to the resource-hungry
Chinese market. Furthermore, it is likely that Australia's stamp collecting
population will grow significantly as the nation ages. The percentage of
Australians over 60 is projected to rise from 16% in 2000 to 24.8% in
2025, and 28.2% in 2050.

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Thursday, December 26, 2013

One of the most radical transformations of the 21st century could be the explosive growth of the middle class, especially in countries where virtually no middle class existed until recently. I am convinced that aside from the many beneficial social and political effects of this change, it will also mean that more people will have the time and money to engage in recreational activities, including hobbies such as stamp collecting.

According to Ernst and Young, the population of the world's middle class will increase by over 260% from 2009 to 2030, and by that year, two thirds of the middle class will live in the Asia-Pacific region. These trends, along with a concurrent trend toward global aging, have important implications for the philatelic investor.

The break down of the projections provided by Ernst and Young is interesting: only North America's middle class declines in both absolute terms and as a proportion of the world's population: from 338 million/ 18% (2009) to 322 million/ 7% (2030). Europe's rises slightly in absolute terms but declines proportionately: from 664 million/ 36% to 680 million/ 14%. It is the developing world which experiences the most dramatic transformation, led by Asia/Pacific: 525 million/28% to 3,228 million/ 66%. Central and South America and the Middle East/North Africa see a dramatic rise in absolute terms along with a corresponding proportionate decline: 181 million/10% to 313 million/6% and 105 million/6% and 234 million/5%, respectively. Sub-Saharan Africa's middle class increases in population by 334%, from 32 million to 107 million, while remaining 2% of the the global total.

Obviously, these are only projections, and any number of circumstances may render them inaccurate. Furthermore, many other factors may also influence the future growth or decline in demand for a particular country's (or region's) stamps, so the middle class population stats should not be viewed alone when making such predictions.

Other than the general positive effect of this "rising tide lifting all boats" on the hobby, the demand for certain stamps will be heightened when favorable trends coincide. The greatest increases in demand will be for better issues with popular topics from countries where both the growth of the middle class and aging of the population are occurring most rapidly. The Stamp Auction Bidders and Consignors Union (SABACU) is a forum
for discussing stamp auctions, and represents the interests of stamp
auction bidders and consignors in their dealings with stamp auctioneers.
All stamp collectors and dealers are welcome to join.

Sunday, December 22, 2013

From 1911-31, Canada issued its "Admiral" series - handsome stamps picturing George V in a naval uniform. Due to this issue's large number of formats and varieties, there are many specialists in this issue among among Canadian collectors, similar to Washington/Franklin fanatics in the U.S..

In 1924, the three low values of the set were issued imperforate. 50,000 of each of the 1c and 2c, and 100,000 of the 3c were issued - low printings for Canadian stamps. Scott '14 prices the set unused at $87.50 ($162.50 for NH) and as a set of pairs - $212.50 (397.50).

I continue to favor all better stamps of British North America as worthy
of consideration. The area is very popular among collectors of both
Canada and British Commonwealth, and the better items represent solid
investments, as interest in stamp collecting in Canada is much stronger
than it is in the U.S. .

With a population of about 31
million, Canada is one of the world's wealthiest countries, and is one
of the world's top ten trading nations. GDP growth has averaged 2.2%
over the past five years, which takes into account the 0% growth of 2009
due to the global financial crisis. Canada's population is expected to
age significantly over the next decades. Canadians over 60 are projected
to increase from 16.7% of the population in 2000 to 27.9% in 2025, and
30.5% in 2050. Consequently, in the future, many more Canadians will be
spending time working on their stamp collections on cold winter days.

Those interested in becoming part of an international community of stamp
collectors, dealers, and investors are encouraged to join the "Stampselectors" group at Facebook. The
group hosts lively discussions concerning stamp investment and practical
aspects of collecting, and provides a useful venue for those who wish to
buy, sell, or trade stamps.

Thursday, December 19, 2013

From 1882-1902, Lagos, a British Protectorate which later became part of Nigeria, issued a set of twenty six stamps picturing a young Queen Victoria for Lagos (Scott #13-38). The Scott Catalog doesn't treat this issue as a set, because there were at least two types of many of the stamps issued. Many of its stamps are quite undervalued, and one could do worse than attempting to form a small specialized collection comprising the set, its varieties, covers, etc..

I've listed those stamps from the set with issuance quantities known (or quantities remaining after supplies were destroyed by postal authorities) of 100,000 or less, and included the Scott '14 values for unused.

Stamps of Lagos have the potential for a strong dual market among collectors of British Commonwealth and Nigeria.

A
nation of over 154 million people, Nigeria is an an emerging market
country, and is rapidly approaching middle income status, with its
abundant supply of resources, well-developed financial, legal,
communications, transport sectors and stock exchange (the Nigerian Stock
Exchange), which is the second largest in Africa. It is the eighth
largest exporter of petroleum in the world. GDP growth has average
almost 6% over the last 5 years. However, the country also has major
problems, including corruption, human rights abuses, grossly unequal
distribution of income, and internal religious and tribal conflicts.

Based
purely on the growth of demand from British Commonwealth collectors,
this set and its scarcest values (#33,33, and 37) represent a
conservative investment with little downside risk. Should Nigeria
develop even a modest base of stamp collectors, it will soar.

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Saturday, December 14, 2013

In 1930, Cuba issued a set of five stamps celebrating the Central American Games (Scott #299-303). 50,000 sets were issued, and Scott '14 prices the unused set at $20.65 ( $32.50.- for NH) .

The set has appeal as a Sports Topical, particularly to Latin American collectors who specialize in stamps honoring this regional competition.

As with most of Latin America, Cuba has issued many stamps which I feel are grossly undervalued. This set has wide appeal throughout Latin America, and should do very well, especially after Cuba rejoins the free world. Note that "gloppy" or toned gum are typical defects found on many of these sets, so select for those that have clean gum.

I believe it inevitable that Cuba will join the fold of more-or-less free nations, and that tourism and trade will explode as a result. Currently, the average wage of each of the 11 1/2 million people living in this "socialist utopia" is under $20 per month, and GDP per capita is 107th in the world. Annual GDP growth has been high, averaging 6.4% over the last 5 years, but given the levels of corruption and favoritism shown to high ranking Communist Party members, it's an open question whether much of that new wealth has been filtering downward. Eventually, something will have to give. The current market for Cuban stamps, especially of the Pre-Castro Period, is bolstered by interest of stamp collectors within Cuban-American community, currently about 1.6 million strong, and far wealthier than their compatriots on the island. Interest in Cuban stamps is likely to increase, especially given the likely prospect of a replacement of the stale, "gerontocratic" regime within a decade or so.

"The Stamp Specialist"
blog features my buy prices for stamps which I am interested in
purchasing. I've posted a buy list for Cuba. Viewing dealers' buy
lists every now and then is an excellent way to keep up with the
vagaries of the stamp market.

Thursday, December 12, 2013

As part of the treaty negotiations ending the 1998-99 Kosovo
War, the United Nations set up an interim administration mission (UNMIK)
in Kosovo, which functioned from 1999 to 2008, when Kosovo declared its independence. The UN issued stamps for this provisional
governing body, and many of the UN-Kosovo sets have topical interest and
were issued in small quantities. In my opinion, the better UNMIK sets
make far better investments than those issued by any of the three
regular UN Offices (New York, Geneva, and Vienna).

In
2005, UNMIK issued a set of stamps picturing Archeological Artifacts (Scott
#38-41). 50,000 were issued, and Scott '13 prices the unused set at $
27.00. The set has potential multiple market appeal to collectors of Yugoslavia, United Nations, and Art
Topicalists.

I continue to like the U.N. as a topic, long-term. The market for
U.N.-related topicals should grow over the very long haul as
institutions of world government develop in order to take on serious
(and possibly existential) problems which can only be coped with
globally. Despite the present inadequacy, corruption, and
ineffectiveness of the U.N., I view its reform and gradual strengthening
as a gradual but irresistible trend.

Kosovo
is now a quasi-independent state with about 1.7 million citizens.
Before Independence, it was the poorest part of the former Socialist
Federal Republic of Yugoslavia, and in the 1990s its economy suffered
from the combined results of political upheaval, the Yugoslav wars,
Serbian dismissal of Kosovo employees, and international sanctions on
Serbia, of which it was then part. After 1999, it had an economic boom
as a result of post-war reconstruction and foreign assistance. In the
period from 2003 to 2011, despite declining foreign assistance, growth
of GDP averaged over 5% a year. This was despite the global financial
crisis of 2009 and the subsequent eurozone crisis. A major deterrent to
foreign manufacturing investment in Kosovo was removed in 2011 when the
European Council accepted a Convention allowing Kosovo to be accepted as
part of its rules for diagonal cumulative origination, allowing the
label of Kosovo origination to goods which have been processed there but
originated in a country elsewhere in the Convention.

Those interested in viewing a list of scarce stamps with printing quantities of 100,000 or fewer may wish to view the StampSelector Scarce Stamp Quantities Issued List,
which currently contains over 9,700 entries. Researching quantities
issued data is vital to determining in which stamps to invest.

Sunday, December 8, 2013

Germany came late to the colonialism game, but nevertheless spent the
last decade of the 19th century enthusiastically pursuing the goal of
extending the "benefits of German civilization" to peoples who did not
yet possess warships, artillery, carbines, or machine guns.

In 1900, it was one of the colonial powers fighting outraged Chinese nationalists waging the Boxer Rebellion. During this time of upheaval, two different 10 pfennig stamps were locally hand-stamped "5 pf" in order to meet a shortage of this denomination (Scott #16,16a). These stamps are distinguished from one another by the angle of the black "China" overprint (56 degrees for #16, and 45 degrees for #16a). 2,500 of #16 and 1,400 of #16a were issued, and Scott '14 prices them unused at $600.- and $550.- , respectively.

As with most valuable overprinted stamps, I strongly advise purchasing them conditional on obtaining expertization.

I favor all better stamps of the various foreign offices in China long-term investments. As with
all stamps issued by the colonial powers in China, the Foochow Provisionals stamps have
been neglected because the Chinese view them as shameful relics of that
period of subjugation, which they are. Until reticence replaces
resentment and demand for the Foreign Offices is boosted among Chinese collectors,
the stamps' values will probably continue to increase steadily, based on
collector demand in Germany.

Those interested in becoming part of an international community of stamp
collectors, dealers, and investors are encouraged to join the "Stampselectors" group at Facebook. The
group hosts lively discussions concerning stamp investment and practical
aspects of collecting, and provides a useful venue for those who wish to
buy, sell, or trade stamps.

Wednesday, December 4, 2013

In 2000, Turkmenistan issued a souvenir sheet of 24 stamps picturing flags of various nations, and celebrating the United Nations' Declaration of the country's neutrality (Scott # 72). 5,500 were issued, and Scott '14 prices the unused sheet at $70.00.

The set has multiple appeal to UN and Flag topicalists, and I believe that focusing on scarce popular topicals is a
prudent means of speculating on stamps of the newly independent nations
of Central Asia. Whether or not demand develops within these countries
for the stamps that they issue, there will always be worldwide demand
for their most popular topicals.

A
nation of 5.1 million, Turkmenistan is a largely desert country with
nomadic cattle raising, intensive agriculture in irrigated oases, and
huge gas and oil resources. It possesses the world's fourth largest
reserves of natural gas, and is also the world's tenth largest producer
of cotton. As in the Soviet era, central planning and state control
pervade the system, although there is gradual progress toward greater
privatization. Annual GDP growth has averaged over 8% over the last 5
years, mostly due to increasing demand for the country's oil.

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Sunday, December 1, 2013

In 1935, Brazil issued a set of four stamps commemorating the "Ragged Revolution" (also known as the Ragamuffin War), which is considered the second bloodiest of the failed wars of independence in the Brazilian Empire, after the War of Cabanagem (Scott #407-10). 100,000 sets were issued, and Scott '14 prices the unused set at $12.30 .

This is a very inexpensive set, considering Brazil's population and prospects for economic growth over the coming decades.

With 191 million people, Brazil is the largest economy in Latin America,
and the world's eighth largest. Political and economic reforms have
given the country a brighter future than it had in the bad old days of
oligarchical dictatorship. The Brazilian economy is diverse, the country
is aggressively investing in its future by generously funding
technological research and education, and exports are booming. Annual
GDP growth has averaged a little over 5% over the last 5 years.

There
are a number of undervalued Brazilian issues with printing quantities
of 10,000 to 100,000, some of which have topical appeal, and
recommending them for accumulation seems a no-brainer. Brazil looks
destined to become an economic superpower, and even if it mirrors the
philatelically anemic U.S. and only one out of a thousand Brazilians
become serious stamp collectors, they'll be competing for their nation's better stamps,
only to find that the cupboard is bare.

"The Stamp Specialist"
blog features my buy prices for stamps which I am interested in
purchasing. I've posted a buy list for Brazil. Viewing dealers' buy
lists every now and then is an excellent way to keep up with the
vagaries of the stamp market.

Thursday, November 28, 2013

Four countries claim territory in the Antarctic and issue stamps for
their territories. They are Australia (Australian Antarctic Territory),
Great Britain (British Antarctic Territory), New Zealand (the Ross
Dependency), and France (the French Southern and Antarctic Territories).
Of these, the French territory, also known as French Antarctic and
abbreviated as F.S.A.T. or T.A.A.F., is of most interest to
philatelists, because most of the F.S.A.T. stamps were issued in modest
quantities and many are beautifully engraved. Most stamps issued for the
various Antarctic territories are sold to collectors, as only a few
hundred scientists reside in research facilities in the Antarctic.

In 1968, the F.S.A.T. issued a set of a stamp honoring the World Health Organization (Scott #31).39,000 were
issued, and Scott '14 prices it unused at $65.- .

Demand for stamps of the French Antarctic is strong in France and among
collectors of French Colonies/Area, and this has obvious
topical appeal as both a U.N. and Medicine Topical.

I continue to like the U.N. as a topic, long-term. The market for
U.N.-related topicals should grow over the very long haul as
institutions of world government develop in order to take on serious
(and possibly existential) problems which can only be coped with
globally. Despite the present inadequacy, corruption, and
ineffectiveness of the U.N., I view its reform and gradual strengthening
as a gradual but irresistible trend.

Saturday, November 23, 2013

About 3 1/2 years ago, I suggested in a StampSelector article that the financially beleaguered Postal Service might raise funds by instituting a postal lottery, in which lucky collectors could win stamps issued in very limited quantities. Admittedly, the suggestion was not a serious one, because although the the USPS has made many idiotic mistakes in the last five decades, it's never promoted gambling or sunk to the level of a carnival tout. As it happens, it's taken my advice, at least generally, with its recent issuance of the $12 Inverted Jenny Souvenir Sheets, each of which contains six $2 stamps.

The history of the original error (Scott #C3a) is well known to many U.S. collectors. In 1918, in a rush to celebrate the first airmail flight, the Post
Office Department issued the 24 cent Curtiss Jenny stamp. Because the
design required two colors, sheets were placed on the printing press
twice - first to apply red ink and a second time to apply blue ink. This
process was prone to human error, as it allowed for the possibility that sheets might be inserted upside down, resulting in inverted center error stamps.
A Washington, D.C. post office clerk who had never seen an airplane sold a sheet of 100 stamps mistakenly showing the biplane upside down to collector William T. Robey.
Robey sold the legendary sheet of “Inverted Jennies” for $15,000 to dealer Eugene Klein, who then sold it to famed collector Colonel E.H.R. Green for $20,000. Colonel Green broke up the sheet and sold most of it over the years, keeping select examples, including one which he encased in a locket which he gave to his wife, Mabel. When offered, these stamps now sell for hundreds of thousands of dollars (up to $1 million, depending upon condition).

Normal s/s

The USPS recently issued 2.2 million of the $12 Inverted Jenny souvenir sheets, but this figure also includes 100 sheets with the biplane rightside-up - intentional "design errors" which correct the original design error of 1918. Actually, it is probably more accurate to call these items varieties. The sheets are being sold in shrink-wrapped packages, thereby rendering it impossible for buyers to see the design of each sheet. In effect, the USPS has instituted a lottery, motivating collectors to buy quantities of the $12 souvenir sheets in hopes of finding those with valuable "biplane rightside-up" varieties.

The intentional issuance of an inverted center errors is not unprecedented. There are a number of developing countries (most notably Liberia) for which such errors are relatively common. In many cases such stamps were created by corrupt postal officials hoping to profit from sales to collectors.The
editors of the Scott Catalog have stated that the new variety will not receive a major or minor Scott
catalog number, though it will be described in a footnote accompanying the souvenir sheet's listing. As an intentionally created scarce variety, it violates Clause 6 of Scott's listing
policy.

Variety ("Error") s/s

Each purchase of one of the $12 sheets basically gives the buyer about a 1 in 22,000 chance of purchasing a variety sheet. For those collectors, speculators, and dealers who might wish to enter this USPS lottery by buying large quantities of the sheets in hopes of acquiring the varieties, the key question to consider is whether the (currently unknown) market value of a variety sheet will more offset the probable loss incurred when unloading all of the normal ones.

A prudent stamp dealer or speculator would consider the following before playing this game: 22,000 sheets will cost him $264,000.- (plus labor and expenses) and will probably yield him at least one variety sheet. Unless he does mass mailings, he will have to sell most of the rest of the sheets as discount postage, for around 70% - 75% of face value ($184,800 to $198,000.-, if all are sold at a discount). In other words, in order for this individual to break even on his gamble, he will have to be able to sell his Rightside-up variety sheet for at least $66,000.- (or $79,200-. if he unloaded the discount postage for 70%). Not bloody likely, in my opinion.

Attempting to predict the probable long-term market value for such an item is an endeavor fraught with difficulty (and peril if one gambles on one's guess). The quantities issued are the same for both the original 1918 Inverted Centers and the 2013 "Biplane Rightside-up" variety souvenir sheets - 100 of each exist. Much of the demand for the original Inverted Jenny stamps is based on their fame rather than scarcity - there are many stamps for which fewer than 100 examples exist (including inverted center errors) which sell for far less than C3a. In fact, there are many such stamps which sell for 1% or less of what a nice C3a will realize at auction. As for the variety souvenir sheets: based upon the values of comparably scarce legitimate U.S. errors, one might reasonably estimate that they will sell for a few thousand dollars each once the hype dies down. However, there are times when reason has little to do with the stamp market.

Those interested in becoming part of an international community of stamp
collectors, dealers, and investors are encouraged to join the "Stampselectors" group at Facebook. The
group hosts lively discussions concerning stamp investment and practical
aspects of collecting, and provides a useful venue for those who wish to
buy, sell, or trade stamps.

Thursday, November 21, 2013

In 1960, Costa Rica issued a set of six stamps and a souvenir sheet honoring the 3rd Pan-American Soccer Championship (Scott #C283-88, C289). 25,000 of each were issued, and Scott '13 prices them unused at $4.90 and $ 6.50, respectively.

Aside from being yet another grossly undervalued Latin American issue, the set doubles as a Sports/Soccer Topical. Soccer is the most popular sport in the world, with a following of billions of fanatical fans, many of whom live in emerging market nations. Philatelic investors who focus on better Soccer topicals will certainly get more out of it than a kick in the shins.

A small nation of 4 1/2 million people, Costa Rica is unique as the only Latin American country to have escaped the plague of repressive dictatorships and oligarchies endemic to the region. Costa Rica has generally enjoyed greater peace and more consistent political stability than many of its fellow Latin American nations. The government offers generous tax exemptions to those investing in the country,and in recent times electronics, pharmaceuticals, financial outsourcing, software development, and ecotourism have become the prime industries in Costa Rica's economy. High levels of education among its residents make the country an attractive investing location. Annual GDP growth has averaged 3.4% over the last 5 years.

"The Stamp Specialist" blog features my buy prices for stamps which I am interested in purchasing. I've posted a buy list for Costa Rica. Viewing dealers' buy lists every now and then is an excellent way to keep up with the vagaries of the stamp market.

Sunday, November 17, 2013

In 1930, Iceland issued a Parliament Millenary Officials set (O53-67), by overprinting 4,000 of its regular Parliament Millenary set (Scott #152-66). These commemorated the thousandth year of Iceland's "Althing", the oldest parliament in the world. Only 4,000 of the Official set were issued, and Scott '14 prices the unused set at $ 1,040.00 .

It's reasonable to question whether it's prudent to invest in stamps issued by a country in which the economy is in a shambles, and I offer two reasons for doing so. Firstly, I believe that Iceland will eventually recover from its current economic problems, and as I commented in an earlier article, often the best time to invest is when there's "blood in the streets." Secondly, there are many stamp collectors who focus on Scandinavia as a region, so the demand for stamps of Iceland is broad- based.

While I usually recommend obtaining expertization when purchasing scarce overprinted issues, it's not necessary in this case, because the basic set is also valuable.

A nation of about 320,000, Iceland has been hard-hit by the European Debt Crisis. Prior to the recent economic contraction, Iceland was the seventh most productive country in the world per capita (US $54,858), and the fifth most productive by GDP at purchasing power parity ($40,112). Except for its abundant hydroelectric and geothermal power, Iceland lacks natural resources; historically its economy depended heavily on fishing, which still provides 40% of export earnings and employs 7% of the work force. It was hit especially hard by the ongoing late-2000s recession, because of the failure of its banking system and a subsequent economic crisis. Before the crash of the country's three largest banks, their combined debt exceeded by approximately six times the nation's gross domestic product of €14 billion ($19 billion). Since then, the government has instituted some financial reforms, and by June 2012, has managed to repay about half of the debt. Average annual GDP growth has been flat over the last 5 years, but seems to be recovering.

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Thursday, November 14, 2013

From 1926-29, Mongolia issued a set of thirteen stamps picturing the Taoist Yin Yang and other symbols (Scott #32-44). Only 5,000 sets were issued, and Scott '14 prices the unused set at $283.-.

I consider the scarcer issues of Mongolia to be conservative long-term
plays, because it is unlikely that there will be an appreciable increase in the number of
stamp collectors in Mongolia in the near future. Currently, most of the
demand for Mongolian stamps is based on the interest of specialists
for the earliest issues, and topicalists for the later ones. Over the
next few decades, however, I feel that the number of stamp collectors
within Mongolia itself will increase significantly.

With about 2.6 million people, Mongolia has successfully made the
transition to democracy since the fall of the Soviet Union. The main
industries remain agriculture and mining, as Mongolia is rich in natural
resources. There has been some diversification into the areas of food
processing and apparel production, and annual GDP growth over the last 5
years has averaged about 10%.

Those interested in viewing a list of scarce stamps with printing quantities of 100,000 or fewer may wish to view the StampSelector Scarce Stamp Quantities Issued List,
which currently contains over 9,700 entries. Researching quantities
issued data is vital to determining in which stamps to invest.

Saturday, November 9, 2013

In 1948, the Sultanate of Muscat and Oman, then a British Protectorate, issued a set of two stamps celebrating the Silver Wedding Anniversary of King George VI and Queen Elizabeth, later known as the Queen Mother (Scott #25-26). 20,656 sets were issued, and Scott '13 prices the unused set at $38.00 .

The set has multiple market appeal among collectors of Oman, British Commonwealth, and British Royal Family topicals. As a popular topic for British Commonwealth collectors, it's hard to beat the Royal Family, with a stick, scepter, or other appropriately heavy object, and banking on such loyalty can pay interest.

A nation of 3.6 million people, Oman is one of the most developed and stable countries in the Arab World. Omani citizens enjoy good living standards, based largely on the country's oil wealth. Proven reserves of petroleum total about 5.5 billion barrels, the 24th largest in the world, and natural gas reserves are estimated at 849.5 billion cubic meters, ranking 28th in the world. Other sources of income, agriculture and industry, are small in comparison and count for less than 1% of the country's exports, but the government views economic diversification as a priority. Annual GDP growth has averaged about 5% over the last 5 years.

The issue has appeal to both collectors of Azerbaijan and Minerals topicalists, and is an inexpensive bet on the
economic growth of Azerbaijan and the development of a stamp market
there. This recommendation is consistent with my belief that one of the
best ways to play the new and newly resurrected countries of Europe and
Asia is to focus on popular topicals with low printings.

Azerbaijan
is an oil-rich nation of about 9 million people, which also has
significant reserves of natural gas and various minerals. Agriculture
and tourism are also important to the Azerbaijani economy. The country
shares all the problems of the former Soviet republics in making the
transition from a command to a market economy, but its energy resources
brighten its long-term prospects. It has begun making progress on
economic reform, and old economic ties and structures are slowly being
replaced. Annual GDP growth has averaged a stellar 21% over the last 5
years, largely based on the frenetic development of the country's oil
wealth - an estimated 7 billion barrels of reserves.

Those interested in becoming part of an international community of stamp
collectors, dealers, and investors are encouraged to join the "Stampselectors" group at Facebook. The
group hosts lively discussions concerning stamp investment and practical
aspects of collecting, and provides a useful venue for those who wish to
buy, sell, or trade stamps.

Sunday, October 27, 2013

W.F. Gregory
advised collectors on how to bid at stamp auctions in
the February,
1905 issue
of "The
American
Journal of
Philately"
..........................................

Stamp Auctions

Ding-dong! Ding-dong! Vendue! Vendue! Ringing a bell and shouting “vendue” the
town crier used formerly to call the public to attend upon sales by public
bidding. By this method all sales by order of courts or other public officials
were required to be made.
It was also a convenient method of disposing of miscellaneous property
expeditiously.

In later years we find the auction-room a popular method of dispersing many
kinds of merchandise. The entire product of a large cotton or woolen mill may
thus be distributed among the wholesale or jobbing houses of the country.

This method of selling, once synonymous with sacrifice, is now often the
arbiter of market prices.

In no line of business has the auction mart become more popular than the stamp
trade. The sales of stamps at auction in New York have reached nearly $100,000
in a single season.

Still it is a matter of surprise how few collectors avail themselves of the
advantages of buying at auction. And there are not a few who, not understanding
the method, have tried unsuccessfully to buy at auction.

The purpose of this paper, then, is to assist those who are, or would be,
buyers, by outlining the course of an auction sale and advising them of their
rights and obligations.

First, it must be understood that those who conduct sales rarely offer their
own goods. Cataloguers of reputation have sufficient consignments to tax their
facilities to the utmost.

The first work of the cataloguer is to separate a collection into lots best
suited to the convenience of the probable buyer, be he collector or dealer.
From a careful collation of these lots results a catalogue which will enable
the would-be purchaser to form a pretty accurate idea, with the aid of a
standard catalogue, of what stamps constitute each lot.

The condition of these stamps can only be generally described, as there is no
fixed standard. Many collectors erect a standard of quality so very extreme
that they can only determine by examination personally, or by a special agent,
if the stamps offered will suit them.

The average collector, however, may accept the description in the catalogue to
mean “marketable,” unless otherwise described.
Probably not ten percent of the best collections of the world are in the
condition required by the ultra-extremist. It is, then, hardly reasonable to
expect perfection where there is only a possibility of 1 in 10 of its
existence.

Having placed this catalogue before the buying public, many bids may be
expected by mail. And it is at this point many bidders fail to understand the
character of the sale. If a lot of stamps which a bidder wants is catalogued at
$10 and he would be quite willing to buy from a dealer at $6, why should he not
bid $6 for it and perhaps get it for less if others did not bid on it?
If one makes liberal bids, it does not follow that he will have to pay the
limit. It is customary to execute the highest bid at a fair advance over the
next higher, at which bid it would be “knocked down” if there is no competitive
bidding from the floor. The room bidders must always be reckoned with.

The bidder should always remember that there are perhaps twenty others bidding
on the same stamp, some of whom are willing to pay as much as himself. His bid
is, therefore, executed at the limit, the first bid received at this figure
taking the prize, if the room bidders permit. Those in the room are always at
an advantage in the bidding and usually secure the snaps.

The sale having been completed, in compliance with the law, which in this city
is very strict, is absolute, and every bidder may be compelled to complete his
part of the contract by paying for and taking away his purchases. No man, under
the law, may refuse to accept and pay for his purchase, which has been on
public view, even if not in accordance with the catalogue.

If he has been wronged, he may seek redress and will be surprised to find how
sensitively the law responds. Appeal to the law is needless, however, as the
manager of the sale will wish to avoid any unpleasant notoriety, and the
auctioneer to protect his license and his bondsmen.

Some bidders, not satisfied with their purchases, seek an excuse by which to
avoid their contract, and display a petty meanness of which they are probably
quite ignorant. How hard to see ourselves as others see us. They return lots
because they are not satisfied and compel the manager to become the purchaser
at the prices they have bid. The manager has no redress but to cut off the
offender from his lists.

To make low bids is quite proper and hurts no one except the bidder. We have
seen strings of 200 or 300 bids on a single sale where the bidder would get two
or three lots no one else wanted. If gunning for bargains, reasonable bids on
desirable stamps is often very successful. If the stamps are not the ones
wanted or not in accordance with the instructions of the bidder, the bids are
canceled.

The small commission charged, usually 5 percent, is often saved many times to
the bidder by thus employing an agent who has no direct interest in the sale.

To summarize: Study the catalogue, mark those lots you wish to buy, enter a
fair price that you are willing to pay for each lot, estimate the amount you
wish to expend, and send your bids for about double this amount to an agent
with full instructions as to your wants in condition, quantity, etc.

Do not send trifling bids. Do not bid on something you do not want.

And, if you make a mistake, do not try to hold someone else responsible.
......................................

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Sunday, October 20, 2013

In 1946, Lebanon issued a set of six airmail stamps (Scott #C101-06) and three souvenir sheets on card stock (Scott #C106 Note) honoring the victory of the Allied Nations in World War II. While the set is fairly common, the souvenir sheets are scarce. 3,757 of the souvenir sheet with sepia inscriptions, 4,138 of the one with blue inscriptions, and 300 of the third, with blue inscriptions and printed on thick, honeycombed chamois card were issued, and Scott '13 prices the first two at $ 30.00 each, and the third at $ 110.-.

The sheets have dual market appeal to collectors of Lebanon, World War II-related topicals. Also, many of the early issues of the independent nations which were former colonies/possessions of France are of interest to collectors there, as cultural ties remain strong.

Lebanon, a nation of 4.2 million people, is noted for its commercial enterprise. Over the course of time, emigration has yielded Lebanese "commercial networks" throughout the world. As a result, remittances from Lebanese abroad to family members within the country total $8.2 billion and account for one fifth of the country's economy. The country has the largest proportion of skilled labor among Arab States. The tourism and banking sectors are the the most important pillars of the Lebanese economy, though they have at times been disrupted by political instability. Annual GDP growth has averaged about 4.8% over the last 5 years.

Sunday, October 13, 2013

In 1956, Panama celebrated the Pan-American Conference by issuing a set of twenty four airmail stamps portraying Pan-American Presidents (Scott #C157-80). 20,000 sets were issued, and Scott '13 prices the unused set at $ 17.55 .

As with all Latin American stamps, there are many collectors who focus on the region as a whole, which supplements demand for the stamps of the individual countries. This is particularly true in the case of this set, as its subject further enhances its regional appeal.

A nation of 3.4 million people, Panama is the fastest growing economy and the largest per capita consumer in Central America. Panama's economy, because of its key geographic location, is mainly based on a well developed service sector heavily weighted towards banking, commerce, tourism, trading. The handover of the Canal and military installations by the United States has given rise to large construction projects. Tourism has grown rapidly during the past 5 years due to the government offering tax and price discounts to foreign guests and retirees. The country also has valuable copper and gold deposits, which are beginning to be developed. Annual GDP growth has averaged over 7% over the last 5 years.

I have begun a new blog, "The Stamp Specialist", which will feature my buy prices for stamps which I am interested in purchasing. I've just posted a buy list for Panama, including the set and souvenir sheet recommended in this article. Viewing dealers' buy lists every now and then is an excellent way to keep current on the vagaries of the stamp market.

Thursday, October 10, 2013

In 1885, Malta issued a set of six stamps picturing Queen Victoria, with a Crown and CA watermark (Scott #8-13). 60,000 sets were issued, and Scott '13 prices the unused set at $144.00 and the used set at $30.50 .

Though Malta had issued stamps since 1860, this was the first Maltese set to include a high value (1 shilling), to be used on parcels, and it is likely that the vast majority of sets were used as postage and discarded. While demand is certainly greatest for unused sets, given the significant difference between catalog values for the unused and used sets, F-VF or better used sets would seem a bargain as well.

Stamps of Malta are popular among British Commonwealth collectors. The country itself, with a population of about 400,000, has annual GDP growth of about 2.5%, and major industries include limestone extraction, tourism, and financial services. Growing secondary sectors include electronics, pharmaceuticals, and film production. Malta is investing heavily in education, which bodes well for the future.

Those interested in becoming part of an international community of stamp
collectors, dealers, and investors are encouraged to join the "Stampselectors" group at Facebook. The
group hosts lively discussions concerning stamp investment and practical
aspects of collecting, and provides a useful venue for those who wish to
buy, sell, or trade stamps.

In my opinion, all of the better stamps of the European and other
foreign former Colonies/Possessions in China should be considered for
investment, as they have dual markets both in their former home
countries and in China.

In 1999, Macao became a special
administrative district of the People's Republic of China. With a
population of about 500,000, Macao's economy is dependent upon tourism,
much of it geared toward gambling, although important secondary sectors
include apparel manufacturing and financial services. Annual GDP growth
has been high, averaging over 9% over the last 7 years. The fact that
much of Macao's economic growth has been driven by a regional monopoly
on gaming is a little worrisome, because obviously there is no guarantee
that the People's Republic won't relax restrictions on gambling in the
rest of China, allowing more competition. Nevertheless, I feel that
certain scarce issues of this former colony are grossly undervalued,
given the number of collectors who will be bidding for them.

Those interested in learning about investing in stamps should read the Guide to Philatelic Investing ($5), available on Kindle and easily accessible from any computer.

Thursday, October 3, 2013

In 1993, Turkmenistan issued a set of 6 stamps honoring the World Wildlife Fund, and picturing Caspian Seals (Scott # 34-38, 38a). 30,000 sets were issued, as well as 5,000 booklets (Scott #38a). Scott '13 prices these unused at $10.15 and $32.50, respectively.

I recommend purchase of both the set and the booklet, although the booklet is certainly the more alluring of the two from an investment perspective. The stamps picturing these cute aquatic mammals appeal to Animal topicalists and Eco-topicalists. According to the American Topical Association, Animals are the most popular topical subject among stamp collectors, and there are quite a few who specialize in WWF issues.

I believe that focusing on scarce popular topicals is a prudent
means of speculating on stamps of the newly independent nations of
Central Asia. Whether or not demand develops within these countries for
the stamps that they issue, there will always be worldwide demand for
their most popular topicals.

A
nation of 5.1 million, Turkmenistan is a largely desert country with
nomadic cattle raising, intensive agriculture in irrigated oases, and
huge gas and oil resources. It possesses the world's fourth largest
reserves of natural gas, and is also the world's tenth largest producer
of cotton. As in the Soviet era, central planning and state control
pervade the system, although there is gradual progress toward greater
privatization. Annual GDP growth has averaged over 8% over the last 5
years, mostly due to increasing demand for the country's oil. The Stamp Auction Bidders and Consignors Union (SABACU) serves as a forum
for discussing stamp auctions and also represents the interests of stamp
auction bidders and consignors.
All stamp collectors and stamp dealers are welcome to join.

Sunday, September 29, 2013

China was one of the first countries
to have a postal service system – starting early in the Zhou dynasty (1111-255
BC).

In the beginning the postal service
was used for official documents only, primarily military in nature. A system of
daks, or stations, was developed to aid in transferring the messages. All
messages were transferred by couriers, who would travel from dak to dak. Upon
arrival at a dak, the first courier would hand off the message to a new courier
who would begin the next leg of the journey, and so on.

In the Qin dynasty (221 – 206 BC),
small kingdoms were brought under unification and a nation-wide postal system
was developed. Though the period of peace and unification did not last long,
the postal system components remained in use regionally and could be easily be
brought back together during a new

Fish-shaped Envelopes, Qin Dynasty

peacetime.

In the Han dynasty (206 BC – 220
AD), the postal system reached the Roman Empire via the silk road, demonstrating
its vast network. The postal system continued to expand and develop, with
couriers traveling by land and water to reach their destinations.

Express tallies, Sung Dynasty

During the prosperous Tang dynasty
(618-907), the postal system was flourishing along with country itself.
There were more than 1600 daks at this time. Couriers had set schedules
and efficiency increased. Under the Sung dynasty (960 – 1270), ‘express’ mail
was created, primarily in response to the frequent wars and invaders on the
north and west borders. Mail was ranked using three categories called tallies:
gold, silver, and copper depending on the urgency. Mail with a gold tally
should be sent at 250 km per day, silver at 200 km per day, and copper at 150
km per day.

By the time the Yuan dynasty rolled
around in the late 13th century, the mail system
was so vast that Marco Polo was compelled to comment on its scale
and efficiency.

During the majority of the postal
system’s history, the mail was used for official government communication and
military use. It wasn’t until the 15th century that private post offices
appeared, and traders began to use the private post as a way to communicate and
make payments.

In the late 1800s, the system began
to be influenced by those in Western countries. The government issued

its first
stamps in 1876, the Imperial Dragon set. By the time of the 1911 revolution,
the Chinese government closed all daks to make way for more modern and
efficient means, and had brought the majority of the private post companies
under control of the government.

(from an article by Meg Doherty) ....................................

Information concerning printing quantities of stamps is often useful in
determining which may turn out to be
good investments. The StampSelector Scarce Stamp Quantities Issued List (SSSSQIL) currently includes over 9,700 listings of stamps and souvenir sheets with issuance quantities of 100,000 or less.